Market-View-Feature-Image

View on market: Stay Cautious, be with quality business:

Most Asian stocks slipped in early trading Tuesday and U.S. futures edged higher as traders await a Federal Reserve meeting that is expected to leave policy exceptionally loose despite robust growth Indices dipped in Australia, South Korea and Japan. U.S. contracts were in the green after solid corporate earnings helped the S&P 500 Index notch another record, with most of the main 11 industry groups gaining. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.18% at 14,512, as of 8.09 a.m.

Key Data/ Action, Result and Board meeting to watch

Major economic Data:

  • INR: Infrastructure Output YoY (Mar) on 30th April, 2021
  • INR: Markit Manufacturing PMI (Apr) on 3rd May, 2021
  • USD: Fed Interest Rate Decision on 28th April, 2021

Nifty Results: Axis Bank, Maruti Suzuki India, Britannia Industries, Bajaj Finance

International Markets:

U.S & Europe

Particulars    25th Apr. Chg Chg(%)
Nasdaq 14138.78 121.97 0.87
Dow 33981.57 -61.92 -0.18
FTSE 6963.12 24.56 0.35
CAC 6275.52 17.58 0.28
DAX 15296.34 16.72 0.11
Dow Fut.* 33,981.57 28 0.09

 

Asian markets:

Particulars    27th Apr. Chg Chg(%)
SGX Nifty 14512.80 25.60 0.18
Nikkei 29078.08 -48.15 -0.17
Straits Times 3213.88 8.98 0.28
Hang Seng 28897.7 -55.13 -0.19
Shanghai 3438.38 -2.79 -0.08

 

ADR Watch:

Particulars       25th Apr. Chg Chg(%)
Dr Reddy 67.86 -0.19 -0.28
HDFC Bank 71.12 1.69 2.43
ICICI Bank 15.94 0.86 5.7
Infosys 18.01 0.12 0.67
Tata Motor 19.81 0.11 0.56
Wipro 7.19 0.02 0.28

 

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR       74.72      0.08
Brent 65.34 0.49
Gold 1,776.25     -0.22
Silver 26.15     -0.18

FIIs & DII

Particulars   25th Apr.       23rd Apr.
FIIs -1,111.89    -1,360.76
DIIs    1,022.57    1,695.59

 

Non-Nifty Results:

ABB India, Gateway Distriparks, Hatsun Agro Product, HDFC Asset Management Company, Hindustan Zinc, JTL Infra, Moschip Technologies, Nippon Life India Asset Management, PNB Housing Finance, Sanofi India, Symphony, Syngene International, Tata Investment Corporation, TVS Motor Company, United Breweries, VST Industries

HDFC Life Q3FY21 (Standalone, YoY)

PAT up 2% at Rs 317.94 crore Vs Rs 311.71 crore Net premium income up 23% at Rs 12,868 crore Vs Rs 10,464 crore Value of New Business increased by 14% to Rs 2,185 crore 13th and 25th persistency stood at 90% and 81% respectively, up from 88% and 76% in the previous year Sold about 9.8 lakh new individual policies registering a growth of 10%. Solvency at 201% Has recommended a final dividend of Rs 2.02 per share

Tech Mahindra Q4FY21 (Consolidated, QoQ)

Revenue up 1% at Rs 9,729.9 crore Vs Rs 9,647.1 crore (Bloomberg Estimate: Rs 9831.8 crore) Net profit down 17% at Rs 1081.4 crore Vs Rs 1309.8 crore (Bloomberg Estimate: Rs 1307.4 crore) Ebit up 1% at Rs 1,553 crore Vs Rs 1,537 crore (Bloomberg Estimate: Rs 1,546.8 crore) Ebit margins at 16% Vs 15.9%

SBI Cards & Payments Services Q4FY21 (Standalone, YoY)

Revenue down 5% at Rs 2,308.68 crore Vs Rs 2,433.24 crore Net profit up 110% at Rs 175.42 crore Vs Rs 83.55 crore GNPA at 4.99% Vs 2.01% NNPA at 1.15% Vs 0.67% Total management overlay provision at Rs 297 crore Impairment losses & bad debts expenses at Rs 705 crore Vs Rs 838 crore Capital Adequacy Ratio at 24.8% New accounts volume at 791K accounts Receivables up 4% to Rs 25,114 crore Vs Rs 24,141 crore Market share by cards issued rises to 19% Vs 18.3%; share of spends at 19.5% Vs 17.9%

Castrol India Q1CY21 (QoQ)

Revenue up 22% at Rs 1,138.7 crore Vs Rs 935.2 crore PAT up 30% at Rs 243.6 crore Vs Rs 187.7 crore EBITD up 32% at Rs 340.10 crore Vs Rs 257.6 crore EBITDA margins at 29.9% Vs 27.5%

News Update:

Bank of Maharashtra:

The board will consider raising capital by issuing Basel III bonds either through a follow-on public offer, rights issue, qualified institutional placement, preferential issue or a combination of these. The board will meet on April 29 to consider the proposal.

Tata Motors:

Company says lockdown in various parts of the country is expected to hit vehicle demand temporarily. The automaker said it will ensure optimal inventory levels by calibrating supplies with retail demand and also be prepared for a rebound in case of a return to normalcy. The company will also review and plan for the critical raw materials to cater to this volatile demand outlook.

Tech Mahindra:

Board has approved a proposal for the acquisition of a 100% stake in Eventus Solutions Group LLC through its wholly-owned U.S. subsidiary for up to $44 million including earnouts. The transaction is expected to close by June 15, 2021.

SAIL:

The Bhilai steel mill will undertake a short shutdown to boost liquid oxygen supply in the country. The company said the closure will boost oxygen supply by 15 tonnes and will not affect dispatches.

Shalby:

Offer for sale by promoter Shah Family Trust has been subscribed 193% by non-retail investors on the first day of the issue. Promoters plan to sell up to 58.1 lakh equity shares, or a 5.38% stake, at a floor price of Rs 111 per share. The issue will continue on April 27.

Federal-Mogul Goetze: Offer for sale gets subscribed 395% by non-retail investors on the first day.

Hathway Cable and Datacom: Offer for sale gets subscribed 151% by non-retail investors on the first day.

Source: Moneycontrol, Livemint, Business Standard, Bloomberg, Investing

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.Company-Specific Disclosures Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in , or e-mailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person. Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, advisory board member or employee of any company in the analyst’s area of coverage. Country Specific Disclosures India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL Advisory discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL Advisory or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL Advisory or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL Advisory or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
2. Compensation
(a) EWL Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL Advisory or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL Advisory or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
(d) EWL Advisory or its associates have not received any compensation for products or services other than investment banking
or merchant banking or brokerage services from the subject company in the past twelve months;
(e) EWL Advisory or its associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
3 In respect of Public Appearances
(a) EWL Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL Advisory
Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL Advisory or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL Advisory has never been engaged in market making activity for the subject company;
(6) EWL Advisory shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.